The cash can be used to offer rescue aid or restructuring support to small and medium-sized businesses impacted by the UK’s exit from the EU.

Heather Humphreys described the fund as a safety net (Niall Carson/PA)

The EU has approved a ten-fold increase in a state aid fund that could rescue Irish businesses hit by Brexit.

Minister of Business, Enterprise and Innovation Heather Humphreys welcomed a move that will see the fund’s budget rise from 20 million euro (£17.2 million) to 200 million euro (£172 million).

The fund can be used to offer rescue aid or restructuring support, in the form of loans, to small and medium-sized businesses negatively impacted by the UK’s exit from the EU.

The EU Commission has agreed to the amendment to the approved level of state aid that Ireland can offer via the fund.

It goes without saying that we hope we never have to use this scheme, however, having the option there is prudent as part of our overall contingency plan for BrexitHeather Humphreys

Minister Humphreys said she hoped the funds would never been needed.

“The Rescue and Restructuring Scheme is an important safety net for companies,” she said.

“It is part of a suite of supports developed by my department to provide aid to enterprises impacted by Brexit.

“By increasing the provision from 20 million euro to 200 million euro, the Government will be able to put in place a fund, should it be required, to offer both rescue aid and temporary restructuring aid to SMEs in financial difficulty or experiencing acute liquidity needs.

“It goes without saying that we hope we never have to use this scheme, however, having the option there is prudent as part of our overall contingency plan for Brexit.”

The scheme is designed to help viable companies that are in a position to restore their competitiveness but find themselves unable to access finance from markets.